Two factors pushing sales are deferred demand and the average age of a car, which generally exceeds 10 years. "The Russian middle class is growing, with nine of the 10 best-selling cars in the country being foreign,” a GM executive says.
Russian demand for upscale cars has been stable; sales of premium brands in the country not only declined less than other market segments during the 2008-2009 global recession but also recovered more quickly.
The manufacturing complex is expected to comprise 21 new plants, six of which will produce cars, while the remaining 15 will specialize in auto parts. GM, BMW and key suppliers are viewed as potential partners.